Kenya Shilling Sinks Deeper against the Dollar

By Soko Directory Team / July 4, 2017



Barclays Africa Expect the Shilling to Hit 106 Against USD by End of 2018
By Amina Faki,

The Kenya shilling depreciated against the US Dollar by 1.2 percent in H1’2017 to close at 103.7 shillings driven by increased food and oil imports.

The shilling also weakened against two other major currencies by 7.3 percent and 10.6 percent year-to-date for the Sterling pound and the Euro respectively.

Generally, regional currencies registered mixed performance during H1’2017 with most gaining against the dollar YTD, wrote Cytonn Investment in a report.

East African currencies depreciated against the dollar losing an average of 1.1 percent YTD and 3.2 percent YTD in the last twelve months.

According to Cytonn investments, the weakening of the East African currencies against the US Dollar was steered by two major factors:

  • Increased food imports during the drought period
  • Increased oil imports as importers took advantage of the lower global oil prices that were expected to rise

The table below shows the performance of selected Sub-Saharan Africa currency against the US dollar courtesy of Cytonn Investment

The key to note is that most currencies that appreciated against the dollar also experienced gains in their stock market indices as their near-term outlook remained positive and dollar flows from investors increased.

Last week, the shilling posted mixed performance with the local unit gaining 0.05 percent against the US dollar supported by improved dollar inflows.

The shilling was supported by the Central Bank as foreign exchange reserves dwindled by 141 million US dollars in the week.

On the other hand, the Euro and the Pound gained 1.93 percent and 1.88 percent respectively supported by the open market operations from the respective head of European Central Bank and Bank of England.



About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team


More Articles From This Author







Other Related Articles








SOKO DIRECTORY & FINANCIAL GUIDE

ARCHIVES

2018
  • January 2018 (291)
  • February 2018 (220)
  • March 2018 (279)
  • April 2018 (226)
  • May 2018 (240)
  • June 2018 (178)
  • July 2018 (169)
  • 2017
  • January 2017 (183)
  • February 2017 (195)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (206)
  • July 2017 (190)
  • August 2017 (196)
  • September 2017 (186)
  • October 2017 (236)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (167)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (246)
  • June 2016 (183)
  • July 2016 (271)
  • August 2016 (250)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (154)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (109)
  • May 2015 (117)
  • June 2015 (121)
  • July 2015 (150)
  • August 2015 (157)
  • September 2015 (189)
  • October 2015 (171)
  • November 2015 (174)
  • December 2015 (208)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950